Tax on dividends originating from shares

Tax on dividends originating from shares

A company's corporate tax is %35 on profit. Further to this a share holder that invests in the company and therefor who is sharing in the associated risks of running the business is paying an additional % 35 tax on dividends when such dividends are distributed. In actual fact a share holder is then paying a total %70 tax. To encourage investors to invest further the % 35 of tax on dividends should be reduced to less then %15 that applies to bonds and which are more secure then shares.


Investing in Shares carries a higher risk than investing in Bonds so it makes sense for share holders to pay less tax on dividends, more so because these dividends are not guaranteed.

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